Yahoo proposes $ 117.5M in compensation for settling data breach case
Yahoo, currently a division of Verizon Communications Inc., may be close to bedding its long-standing tale of the biggest hack at any time via a revised settlement settlement of $ 117.5 million.
was published Tuesday and was reported to cope with criticism from US District Judge Lucy Koh, who had previously rejected a settlement offer in January.
The proposed settlement includes at least $ 55 million for off-pocket victims, $ 24 million to pay for two-year credit monitoring service, as much as $ 30 million for legal expenses and an additional $ 8.5 million for unspecified expenses.
Three billion Yahoo accounts were broken in August 2013, with data stolen including names, email addresses, phone numbers, date of birth, hashed passwords, and in some cases encrypted or unencrypted security questions and responses. In a separate hack in 201[ads1]4, 500 million accounts were threatened.
John Yanchunis, a lawyer for the plaintiffs, said in a lawsuit that $ 117.5 million was the "largest fund ever achieved in a data weight case." [19659002] A Verizon Media spokesman said "we believe the settlement demonstrates our strong commitment to security."
Verizon itself does not exactly have a perfect record in terms of data security, with 14 million customer listings exposed via a misconfigured Amazon Web Services Inc. S3 instance in 2017, although it was blamed on a contractor.
Doubling down, Verizon said it would spend $ 306 million between 2019 and 2022 on information security, five times what Yahoo used from 2013 to 2016. In addition, it is required to quadruple Yahoo's crew security staff as part of the settlement agreement.
High-Tech Bridge SA CEO Ilia Kolochenko told SiliconANGLE that, on average, $ 25 per compromised account, which he called "embarrassingly modest compensation for breach of privacy and stolen personal information."
But he added that it is It is common for class action to enrich lawyers more than victims. "Otherwise, the settlement gives an illusory message of relatively modest penalties for negligent data protection," he said. "In 2019, even a less serious breach, is able to postpone the firm for incomparably serious and harsh sanctions in various jurisdictions. We need to take cyber security seriously or pay a significant price."
Yahoo's proposed settlement has not yet been accepted by US District Court, Northern District of California. When the decision will be considered by the court, it is not clear.
Photo: Pixabay
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